QUALIFICATION OF USERS OF SPECIALLY DENATURED SPIRITS
CAUTION
SECTION 5271 I. R. C., AS AMENDED BY PUBLIC LAW
85-859, (72 STAT. 1370) PROVIDES THAT NO PERSON
SHALL PROCURE OR USE SPECIALLY DENATURED
SPIRITS ON AND AFTER JULY 1, 1959, UNTIL HE HAS
FILED AN APPLICATION TO DO SO
Specially denatured alcohol users
and others concerned:
What applications should you file? In order to continue to use and procure specially denatured spirits (formerly called specially denatured alcohol)
on and after July 1, 1959, you are required to make application on Form 1479
(Revised April 1959), copies included, for an industrial use permit (formerly
called a basic permit) to use specially denatured spirits and an application on
Form 1485 (Revised April 1959), copies included, for a permit to procure
specially denatured spirits.
What quantities should you show on your applications? Your application for
an industrial use permit, Form 1479, requires that you state the quantity of
specially denatured spirits, including recovered or restored denatured spirits
and recovered or restored articles, that will be on hand, in transit, and unaccounted for at any one time. This quantity will determine the penal sum of
your bond. It may be large enough to permit you to order containers of the
size that you usually purchase and have the specially denatured spirits in
transit while you have a sufficient quantity on hand to care for your needs.
Your application on Form 1485 will require that you state the total
quantity to be withdrawn during a calendar month and the total quantity to
be withdrawn during a year. The proposed regulations state that the quantity
of any formula to be withdrawn during any calendar month should not be
more than one-twelfth of the annual requirements but provides that where
you desire to withdraw more than one-twelfth of your annual quota during any
month you should state your needs and furnish sufficient information for the
assistant regional commissioner to determine whether such withdrawals
should be authorized. If one-twelfth of your annual quota is less than a 55
gallon drum and you have sufficient reasons for desiring to purchase in a 55
gallon container, you should enter 55 gallons as the quantity to be withdrawn
per calendar month and furnish sufficient information for the assistant regional
commissioner to determine whether that portion of your application should be
approved. The same procedure would hold true if you have a seasonal business
that required that you use specially denatured spirits in only a few months
during a year. You should determine your annual quota and the need for each
of the few months that you expect to use the material and adequately explain
your desires.
Period to be entered on Form 1485. Your entry for the beginning of the
period should be July 1, 1959, but the ending date should be left blank at this
time.
What should be done about your bond? You shall file a new bond, Form
1480, or you may continue your current bond in effect by filing a consent of
surety, Form 1533, copies attached, extending the terms of the bond to cover
specially denatured spirits on hand, in transit, and unaccounted for on and
after July 1, 1959. If you have submitted a strengthening bond, such bond shall
also be covered by a separate consent. If you increase the quantity, you should
submit a strengthening bond with your same surety or submit a new bond.
Where and when qualifying documents should be filed? The above described
applications bond or consent of surety with the necessary supporting documents
outlined in the accompanying excerpts from the proposed regulations shall be
filed in duplicate with your assistant regional commissioner (alcohol and tobacco
tax). They should be filed as soon as possible after you receive the forms in
order to expedite handling in the office of your assistant regional commissioner.
Result if applications are not filed prior to July 1, 1959. If you do not file
the two applications and bond or consent of surety on your bond or bonds prior
to July 1, 1959, you will not be entitled to use specially denatured spirits on and
after July 1, 1959, and the vendor named on your current withdrawal permit will
be notified by the assistant regional commissioner that you may not continue to
withdraw specially denatured spirits.
Continuation of permits on and after July 1, 1959. The proposed regulations provide that if you hold a permit as a user, have a valid withdrawal permit on Form 1485 on June 30, 1959, and have filed the required applications,
you may continue to use and withdraw specially denatured spirits on and after
July 1, 1959, under such permits until final action is taken on your applications.
Inquiries. Inquires in regard to this industry circular should refer to its
number and be addressed to the office of your assistant regional commissioner
(alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 46853
Industry Circular No. 59-10, Supp. No. 1 May 6, 1959
QUALIFICATION OF USERS OF SPECIALLY DENATURED SPIRITS
(ALCOHOL)
Specially denatured alcohol users,
and others concerned:
Purpose. The purpose of this supplement is to advise you of
certain changes to be made in the instructions furnished you with
Industry Circular No. 59-10.
Background. Reference was made in Industry Circular No. 59-10 to
proposed regulations, and the instructions furnished contained excerpts
from the proposed regulations. These proposed regulations were published
in Part II of the Federal Register for April 21, 1959, as a notice of
proposed rule making. During recent conferences with industry members
and personnel from our regional offices suggestions were made for simplifying these proposed regulations. We believe that some of the
suggestions are excellent, and we expect to propose their inclusion in
the regulations. Accordingly, we have anticipated these changes and
revised the earlier instructions. In filing your application you may
follow the revised instructions. If, upon further review, additional
information is found to be necessary, you will be so advised.
Information relative to changes.
(a) In listing your equipment,
as required by paragraph 1 (f), it will be sufficient to list only the
principal articles of equipment to be directly involved in the use of
the specially denatured alcohol.
(b) The information required in the first sentence of paragraph 1
(i) need not be submitted except on the specific request of the assistant
regional commissioner.
(c) The second sentence of paragraph 1 (i) permits you to adopt, by
reference, items of information on file in the office of the assistant
regional commissioner and applies to all of the items of information
required under paragraphs (d) through (h). This provision also applies
to the documents listed under section 3, Organizational Documents.
(d) In lieu of the corporate documents listed in section 3 (a),
only the following documents need be submitted.
(1) Certified true copy of the certificate of
incorporation, or certified true copy of certificate
authorizing the corporation to operate in the State
where premises are located, if other than that in which
incorporated.
(2) Certified list of the names and addresses of
the officers and directors.
(3) Statement showing the number of shares of
each class of stock or other evidence of ownership,
authorized and outstanding, the par value thereof, and
the voting rights of the respective owners or holders.
(e) You need not submit certified extracts or digests of
minutes of meetings of boards of directors, authorizing certain
individuals to sign for the corporation but your application must be
accompanied by evidence which will establish the authority of the
officer or other person who executes the application for permit to
execute the same unless such authority is already on file in the
office of the assistant regional commissioner.
(f) The names of the persons interested in a parent corporation,
mentioned in the second sentence of paragraph 3 (c)(1), need be submitted
only at the specific request of your assistant regional commissioner.
Modification of Form 1479. The use of a more specific term than
"specially denatured spirits" is desired. Please modify Form 1479 by
inserting the term "specially denatured alcohol" or "denatured rum",
as the case may be, at the end of the statement immediately above
item 3.
Inquiries. If you have any questions regarding your qualification,
they should be addressed to your assistant regional commissioner (alcohol
and tobacco tax).
Important
If you have already filed your application in accordance with
the first instructions furnished you, no further action is necessary.
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division |